Common Mistakes Made In Home Business

Anyone who is trying to start a home business has probably seen the failure statistics for new home businesses, and avoiding some common mistakes made by new business operators will help make your home business more successful.

A lack of self discipline is one of the most common mistakes made by people who start a home business. Being your own boss is great if you have the discipline to work when you should, instead of running off to play. People who procrastinate or do not do well working with no supervision usually do not operate successful home businesses. If you plan to start your own home business, you have to be prepared to work even if you don't feel like it to meet your deadlines.

Not marketing their home business is another huge mistake that new home business owners make. Marketing is needed to bring in customers, and without it a home business may very well shrivel and dry up. Marketing can be done in numerous ways, and the cost varies from very cheap to very expensive, depending on the specific marketing campaign. Marketing will help you reach people and tell them about your home business. Not aggressively marketing their home business may cause many owners to watch their business fail.

A big mistake that is made by home business owners is to take customer service and concerns lightly. Customers are your profit maker and a sign of the success of your home business. By ignoring concerns or not correcting problems, your home business could lose customers. Word of mouth is the best advertising you can get, and it can not be bought. A satisfied customer will tell friends and family members about your home business, and this could lead to several more customers. If a customer is unhappy and you do not fix it, you can bet that they will tell everyone they know, and this could cost your home business many potential customers. Excellent customer service is a must for any business, including home businesses.

Common mistakes in your home business could cost you customers and profits. By realizing some of the more common mistakes new home business owners make, you can avoid these mistakes and have a better chance of making your home business a success. Make sure that you have the self discipline that is required when you work for yourself. Market your home business aggressively. Marketing brings in customers and tells everyone about your home business. Make sure that you have excellent customer service. A satisfied customer is a repeat customer who will tell people they know. This leads to more customers and more success for your home business.

Copyright © 2007 Joel Teo. All rights reserved.

Common Myths About Operating A Business Franchise

As with any business venture, you can not always rely on information passed casually between holes at the golf course. While 95 percent of all franchises are successful, there are several common myths that may set some franchisees up for failure. This happens when an entrepreneur enters the franchise model with high expectations only to be let down by the realities that come with any business. It’s important to be realistic and deliberate in your approach to launching any new company, whether it’s an established brand or built from the ground up. As you weigh the pros and cons of operating a business franchise, do preliminary research and don’t accept what “everyone else” seems to tell you, even some of the franchisors.

Myth: Franchises are a guarantee route to success in the business world.

Fact: The main reason franchises are so successful is because of their rigorous requirements. For instance, most of them require large capital investments. Many of these investments are so substantial that only serious entrepreneurs would even consider signing on. Of those who purchase one of these businesses, not all of them have the assets allowing them to wait for a return on investment. The fact is that it can take a considerable amount of time for franchisees to generate a profit because of the high investment, royalty fees, etc. Thus, under capitalization is the most frequent cause of franchise failure.

Myth: You can be your own boss.

Fact: While you will enjoy some perks that come with owning a business, you are still subject to the operating system provided by the franchisor. A few examples of this include hours of operation, approved equipment and supplies and even marketing items. What this means to you is that closing early on Christmas Eve may not be an option, unless you are willing to risk getting caught and any accompanying repercussions.

Myth: Buying a franchise is less expensive than starting your own business.

Fact: The initial cost of purchasing a franchise business is typically the same as building one from the ground up. This makes sense when you consider the real estate, equipment and supplies in addition to franchise fees (allowing the use of the brand name, logo, trademark and in some cases, marketing materials). Plus, royalty fees to be deducted from your profits later must also be factored into the equation. Of course, there is no reason to become discouraged. In truth, the key to managing a lucrative franchise is to find the right business opportunity for you, which brings about the next point.

Myth: Higher cost franchises translate to larger returns.

Fact: Rather than searching for the highest investment amounts, you should do your best to find a franchise that will allow you to make use of valuable skills. For example, if you have previous experience in the daycare industry, you should consider some of the children’s franchises in this industry. Though children’s salons are all the rage, your resources, economic and otherwise, will be better spent running a business you already understand. You will see higher profits sooner. Thus, putting your capital in one of the low cost franchises of which you are knowledgeable will prove more profitable than using your resources on one of the high capital franchises you know little about.

Myth: Franchising is a stress-free way to start a business.

Fact: Building a business of any kind can be very stressful at times. While franchises offer terrific benefits such as established name recognition, a working infrastructure and ongoing advertising campaigns, franchisees are not immune from the ups and downs of business ownership. The fact is that these benefits come with specific requirements. Not only are franchisees expected to operate within certain guidelines as mentioned previously, they’re also held accountable for the financial success of their stores. One illustration of this might be a business franchise that experiences a drop in sales over one month. Not only does the owner have to deal with loss of revenue, he or she has to provide an explanation to the franchisor.

Myth: Owning a franchise means you no longer have to deal with employees.

Fact: Developing any business takes not only a monetary investment but also your time and effort. Chances are, you will spend some time, even though it may be very little, making sure things go smoothly at your store. For instance, imagine owning a restaurant franchise. You stop by to visit with your manager about changing coffee suppliers when you notice an unusually full parkinglot. You enter the restaurant to find that all the employees working at their maximum. Drink orders are completely backed up. Since you have a vested interest in making this surplus of customers is happy, it only makes sense for you to jump in and start making drinks. Moreover, if you plan to manage a multi-unit franchise, you will have to hire and develop a quality team of managers in order to achieve success. This would require a great deal of communication and consequently, demand spending time with management employees.

Myth: It’s better to purchase a brand that is already established in my region.

Fact: Going back to the restaurant example, if your goal is to open a profitable fast food chain it may be wise to open one that is already reputable in your community. After all, people know what you offer and that they enjoy it. On the other hand, you have to consider the amount of business the other restaurants are getting. Do they have customers from your territory willing to travel across town to dine there? If so, is the market big enough to share if you build a location in between your designated part of town and the other store(s)?

Myth: You’re always protected from competing franchises in your territory.

Fact: This depends on your contract. If your agreement is strong, you’ll be protected from unwarranted competition, even when it is due to a company merger or a second chain created by your franchisor. Additionally, you should always consider the time frame disclosed for when your territory becomes negotiable. Nonetheless, best way to attain a beneficial agreement between you and your franchisor is to have an attorney review these important documents before you agree to any of their terms.

Myth: The most popular (and lucrative) chains are franchise businesses.

Fact: While studies show that franchises are more financially rewarding overall, not all lucrative chains are franchises. Case in point: Businesses like Starbucks, Lone Star Steakhouse and Kinkos function under a company owned model. This means that the company owns each store but hires managers to run them.

If it Sounds too Good to be True…

With any business, the prospective owner must be prepared to put in a great deal of hard work, time and in many cases, capital. The only real way to guarantee success is to find the business that utilizes the resources already available to you (financial and otherwise). Most of all, it’s good to be optimistic as long as you remain aware of the dedication it takes to run any productive business, even franchises.

9 Characteristics That Millionaire Businesspeople Have in Common

In May 2005, Forbes magazine reported that there were 691 billionaires in the world. 1400 people across the world turn into millionaires every day. Want to become one of them? Of course you do. Everyone wants the freedom to do business in the way they choose. There is so much power in running your own business – and having a business that runs itself, which for many people is the ultimate goal.

Making money is not the only goal of becoming an internet millionaire – it’s about freedom. Many people across the world are gifted with experiencing this freedom everyday. How can you become one of these people? What kind of life, and business, do you want to run? Would you like to be able to check your email from your private plane? These are the kinds of goals many people have in mind when they begin to forge ahead with their business ideas. But the truth is that the rich and the successful – the millionaires off and online – have about nine characteristics in common, not that different from a lot of people we all know. Most of them exhibit some or all of these. The truth is that we all have the potential for greatness – if we can train ourselves to keep this in mind as we go about our business day.

1. They don’t blame. Successful businesspeople don't blame others. Instead of making excuses for bad outcomes, or reassigning responsibility to others, they take time to learn from their own mistakes.

2. They are decisive. Millionaire-types have a vision. They take quick, decisive action aligned with that vision. They’re action oriented, always pushing forward toward their goals.

3. They trust their intuition. If something seems like it’s not quite right, they trust that instinct. If an opportunity excites them and sounds like a great idea, they go for it.

4. They are singly focused on their CORE business. Successful entrepreneurs may be inspired by ideas, but they always remain true to their vision. They focus on opportunities that are aligned with their business’s purpose. If you sell retail products on eBay, don’t try real estate investing the next day. They don’t lose focus. They may sell their products on eBay, write articles, focus on joint ventures, and go to marketing seminars, but all of their efforts, and FOCUS, help them move toward their main goals.

5. They are marketing focused. Millionaires, including such giants as Bill Gates, understand the importance of building on their core business. They hire people with specialties in marketing. They work hard at building their email lists, gaining exposure, and are constantly looking for ways to reaching a wider audience. If you want to build a decent income, you sell products and services. If you want to be insanely rich, then you create and control markets. The key to your business, and creating phenomenal success, is marketing.

6. They understand the importance of continuing education. Successful businesspeople are always learning and drawing from other people’s experiences. They listen to how other people have achieved their success, especially if these people have expertise in another industry. They are constantly learning about new approaches and strategies, and thinking about how they can apply it to their own business.

7. They are not afraid of making mistakes. Any big company online will tell you that they’ve had their share of downfalls, even such giants as eBay or Craig’s List. Mistakes are building blocks for success – by making mistakes, you learn what works, and what doesn’t. You don't have to get it right, you just have to get it going. We all make mistakes, and one of the most powerful things you can do is glean feedback from them. Feedback is a great way to learn from your customers and colleagues. You need to look at feedback and take it with a grain of salt - it helps you learn and grow. See your mistakes as learning lessons

8. They model their business for success. Internet millionaires model other people, strategies, and systems. They constantly look for models of success in everyday life and think about how to incorporate these lessons into their own strategy. They even look at their competition for answers. Whatever niche you're in, subscribe to some industry newsletters, buy their products, and learn HOW they create success.

9. They build a team to rely on. No matter what stage you are in with your business, you’ve got to realize that you simply cannot do it all. You can’t be an expert in everything. You want to create a great team of people. How can you find them? Go to seminars and workshops. Hone your networking skills. You’ll often find that like minded people that are out there constantly learning and attending, seminars and workshops. Getting rich is a team sport. You have to have people that are cheering you on, encouraging your success.

These are some inherent characteristics of business millionaires. Can you apply them to your business and your life, too? Of course you can. If you can keep these principles in mind, you’ve got the millionaire mindset. No, you aren’t going to get there overnight. Making a million dollars takes some time. You can’t make a million dollars if you haven’t made your first hundred. So focus on the first hundred, first thousand, and first hundred thousand. Thinking this way goes a long way toward your goals – finding success, gaining riches, and living the kind of life you want to live.

5 Common Problems Overlooked By Business It Networks.

IT Networks though simple, require extensive planning to ensure stability, yet we often encounter businesses that are acquainted with the imperative role networking plays in the efficient functioning of their company.

Informed business entrepreneurs often opt to upgrade their networking systems to suit their organizational structure. Although upgrading is an expensive, time consuming process, its benefits are ten fold. Though, there are some small size companies that insist on having a Windows XP workstation function as a network server, this decision may eventually lead to decrease in efficiency and productivity of the entire Information Technology environment.

Network Consultants should always analyze the nature of your business so as to recommend a networking/Information Technology system that would be the best fit for your business. IT Consultants should evaluate both hardware and software requirements to guide your company through the pros and cons of various networking options that your business may be considering.

From a network consulting standpoint, these are five common problems that are either neglected by businesses or not included in the overall planning of the Network Infrastructure.

Disaster Recovery: Although entrepreneurs are risk takers they provide for all contingencies. While they insure their store and goods against fire, theft, natural calamities, etc., in many cases they ignore the need to implement a disaster recovery plan for financial records, employee payroll and client data. Losing valuable customer information to a fire would result in temporary chaos and a financial drain. Therefore, a data recovery system should be available to restore normal operation within 24 to 48 hours. There are several options to evaluate depending on the size of the business. A good Technology consulting company should be able to assess the needs and accordingly recommend an IT recovery plan that is fool proof yet affordable.

Redundancy: Although businesses are advised to maintain an alternate or redundant source of power supply for critical servers, many entrepreneurs ignore this simple loss prevention method in order to save a few hundred dollars. For example, servers that process customer credit card transactions are not exempted from the probability of failure and if not backed by a redundant power source, it may lead to a major financial loss. The point that I am trying to get across is that important network equipment should be identified and a redundant plan should be implemented to provide against unforeseen circumstances.

Network Security: Viruses are not strangers to the world of computers and internet. While performing technology analysis and auditing we come across businesses that have servers on DMZ without network security measures like a simple firewall. We have seen instances were employees had full access to the network server running virus inviting programs like Limewire. An obvious result of this would be a slow network. In most cases, passwords for workstations, servers etc. are identical and shared. Impermeable network security plans should be implemented especially when business IT infrastructure holds confidential information of clients or individuals that may become a risk as well as an embarrassing situation if lost

or stolen.

Network Speed: Businesses always focus on maximizing efficiency and productivity at the lowest cost and what better way to achieve this goal than to minimize wastage of employee time? Speed of IT networks depend on many factors from simple network security policies to restrict P2P software to intelligent switching hardware. You may be surprised but network infrastructure cabling (Cat 5, Cat 6, and Fiber Optics) also makes a significant difference on the performance of the entire network.

Expandability: Change in networking structure is an option that should always be open for clients. To plan ahead is important as a business need not overhaul a huge part of their network to see an insignificant benefit. A simple example would be to anticipate network storage requirements of data. Clients often overlook the importance of discussing options with consultants to make sure their IT system remains adequate for at least 3 to 5 years. The aim should be to minimize dollars spent without hindering the quality of work being performed by employees.

Consultants are professionals and while their recommendations should not be overlooked, they should not be adopted blindly either. As a customer you are entitled to know the ‘whys’ and ‘hows’ of every suggestion made. Request layman’s explanation for every problem encountered. Most importantly, ensure that the 5 major and basic areas are covered in the initial audit reports or recommendations made by any Technology consulting company.

Onsite Chicago is Technology Consulting company for business in the Chicago area. Featured in major newspapers they are considered one of the top business network consulting firms. To view a complete list if IT services from Network Management, Network security and data / telephone cabling please visit Chicago Business Network Consultants page.

Common Risks Involved in Real Estate Investments

While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they've probably lost a few fortunes in real estate along the way. This is a risky business and every property purchased doesn't always pan out to become a successful investment. There are many risks involved in real estate investing and you would be going to battle unprepared if you didn't take a moment to carefully study these risks and work to avoid them when planning your property investment strategy.

Unfortunately, there are very few one size fits all risks for real estate investing, as each type of investing is inherently different. This means that each type of real estate investment will involve a new set of risks. Below you will find a brief overview of different styles of investing and the common risks that are involved in each.

Rental Properties

This type of investing offers some risks that are unique and some that are also risks when investing in properties that are lease-to-own or rent-to-own as well. First and foremost is the risk of failing to make a profit. If the property in question cannot achieve an adequate monthly income to cover the expenses of operating the property then it is not a solid investment.

Other risks include the risk of getting bad tenants. This is particularly hard on first time investors. Bad tenants are costly and in some cases destructive (which leads to even greater expense). Vacancies are another risk for rental properties. These properties are only costing money as they sit empty rather than earning money as they were intended. Short turnovers are in your best interest as are long-term tenants.

"Flipped" Properties

This is one of the most enjoyable types of property investments for many 'hands on' investors. This allows the investor to roll up his or her sleeves and take an active role in creating the masterpiece that will eventually bring in serious revenue (at least that is the hope). This is also one of the riskier investments, particularly when trying to turn a profit in what is known as a buyer's market.

The risks are simple but often overlooked and they can have a significant impact on the overall success or failure of the project. First of all, the biggest risk is in paying too much for the property. Other risks include underestimating the costs of repairs, over estimating the ability of the investor to do the work him or herself, taking too much time, experiencing a down turn in the housing market, making the wrong judgment call for the neighborhood, becoming overly ambitious, and getting greedy. Sometimes it is much better to walk away with a lesser profit than to end up loosing money by holding out.

Personal Residence

Keep in mind that your personal home is essentially an investment. The intention is that your home will gain in value over time and that equity in your home will build as you age. There are risks involved in this transaction as well. Buying a home that is in a 'borderline' area or one that is not showing obvious signs of growth is one of the biggest risks. This puts your home in the position to lose rather than gain value. This can make your home a burden rather than the investment it was intended to be. Other risks involve is becoming involved in a loan situation that is not at all beneficial (such as an adjustable rate mortgage or an unreasonable balloon payment).

Perhaps the biggest risk of all when purchasing a personal residence as an investment is failing to get a proper inspection that could rule out potentially costly and even dangerous problems within the home your purchase for you and your family. Toxic mold is one problem that comes easily to mind that most proper home inspections would almost immediately rule out. Others include structural problems that are costly to repair and dangerous to leave in disrepair. Each of these risks should be considered before an offer is made on any property.

For those seeking to turn impressive profits in short order, real estate is one way in which this can be accomplished. It is in your best interest however to be aware of the risks that are involved and take careful steps to minimize those risks. Taking these steps now may cost a little more on the front end but in many cases the pay off for doing so well outweigh the expenses.