Chosen Thought

Posts Tagged ‘Business’

There are many benefits of running an online based business. The internet has opened up the door for everyone to profit with an online business. An online based business gives every person willing to put in the work the chance to make huge sums of money in a very short period. Some of the benefits to running an online based business are low start up costs, huge markets to sell to (you could potentially sell to anyone in the world who has internet access), no leasing fees since your business in the cyber world, and no reason to have and pay employees.

If you wanted to start a business normally you would need around 50 grand to start it up. Unless you had the cash you would have to go to your bank and get approved for a business loan. After you had your loan then you could start up your business. With the internet you could start an online based business for just a couple of hundred dollars.

After you received your business loan you would then have to find a place to lease for your business. You would then need to make sure you could make your monthly rent. You would need money to pay for your daily operating costs, like electricity, gas, heat and other costs you would need to operate. With your online business your operating costs can be very minimal. You just have to pay for your internet service and hosting fees if anything.

There are many benefits of running an online based business. The internet has opened up the door for everyone to profit with an online business. An online based business gives every person willing to put in the work the chance to make huge sums of money in a very short period. Some of the benefits to running an online based business are low start up costs, huge markets to sell to (you could potentially sell to anyone in the world who has internet access), no leasing fees since your business in the cyber world, and no reason to have and pay employees.

If you wanted to start a business normally you would need around 50 grand to start it up. Unless you had the cash you would have to go to your bank and get approved for a business loan. After you had your loan then you could start up your business. With the internet you could start an online based business for just a couple of hundred dollars.

Lenders have moved to all-electronic loans process, as online source has mastered the complexity of the borrowers who have fails to locate lenders in the market. Despite the loan type, borrower’s credit history, anyone can avail the opportunity to access the loan. Today, if the borrower wants to owe or expand a business he can easily avail the finance through Online Business Loans.

Availing Online Business Loans is no big deal? Online business loans can be used for various purposes like business establishment, business upgradation, business expansion, purchasing the raw material, paying off bills, furniture, paying off the salary, etc. New business will have hard investments whereas seasoned business may require business loans to meet short term expenses.

Whether you are starting an import business or have an established importing business, it can be a very profitable venture if you have the right financing to grow your business. Imports are defined as: a good that crosses into a country, across its border, for commercial purposes; a product, which might be a service that is provided to domestic residents by a foreign producer; or a combination of the two.It is essential that you have good, honest suppliers plus creditworthy customers with purchase orders for your imports. If you have the right financing, your business can grow exponentially. But how do you finance growth if your own resources or bank lines of credit are not sufficient to take advantage of big opportunities? A combination of purchase order financing, accounts receivable financing with inventory financing may be the solution.
Accounts Receivable Financing is the selling or pledging of your company’s account receivable, at a discount, to a Factor, a Commercial Finance Company or to an Accounts Receivable Financing Company who may assume a risk of loss. You receive a portion, usually 80% to 90% of the face value of your receivables in advance of payment from your customers in return for a fee, or interest, to be paid to the commercial finance company. When the commercial finance company is paid by the customer, the appropriate fees are deducted and the remainder is rebated to you. “Accounts receivable financing” is also called accounts receivable factoring, factoring financial services, invoice factoring and cash flow factoring. The terms are used to convey the same meaning.

Despite stringent disclosure rules which aim to even things up between the supposedly rapacious seller and the innocent purchaser, it’s very easy for a buyer of a small family business to be caught by buying a dud.

If you’re stuck with a dud business as a result of being deliberately deceived you certainly can take them to court. But you don’t need me to tell you of the costs of litigation, the time it takes (years!), and the very real chance you may not succeed anyway.

Trap: The Demolition Clause

Before I left the shop I had asked the owners for a copy of the lease. They told me it still had 4 years to go and there was an option to renew for another 5. Good.

I read the lease and found it had a demolition clause in it. This allows the landlord to terminate the lease with minimal notice if they planned to demolish and redevelop the mall. And there is no compensation to the unfortunate lessee.

The trouble with a demolition clause is that it can be triggered at any time by the landlord and usually with very short notice. You might assume (or be told) that it would only be used to periodically give the center a makeover, which is not necessarily a bad thing. You have a lovely new shop and traffic through the center increases.

But a demolition clause does not in any way guarantee that you will get a new shop or that an office block (or whatever) will not be built on the site with no room for your shop.

So, in essence, you could lose everything. Where I have seen businesses with this clause in the lease, I usually say don’t buy it – just walk away.

Trap: The Refurbishment Clause

I then discovered a clause that said the shop had to be refitted and refurbished every 7 years to a minimum standard dictated by the landlord and at the lessee’s expense. The 7 years was up in two years time and I estimated it would cost about $100,000.

Retail shops do have to be refurbished from time to time, otherwise they may lose customers. But it should be the owners decision when to do this and how much to spend on it. This clause does not necessarily mean you should not buy. But it certainly gives you grounds for negotiating a lower price.