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Business Ideas and 4 Steps to Make it Profitable

In a few words, we can summarize all about becoming profitable with your business ideas within four very easy stages. Understanding. Preparation. Do it Now. Sell it. There are no simple way to making money with your ideas for a business. Let’s put it this way. If you’re seeking a bypass that you can use to materializing any top business idea online, you may desire to ignore this article. But in order to commence making money from your online business, there are A lot of things to be done. The best thing Is for you to hold on to your day job (if you still have one) and take all four stage we Advise here and THEN you quit your day job.

Understanding

Research the business. That’s the first thing you should do if you are really serious about launching any of the top business ideas online these days. Starting the new online business is not Hard at all. In fact, it is relatively Simple and needs little funding. Do your homework; take a look at what your competitors are doing. See how successful they are, adopt their Strong points and ignore their bad ones. Define your services or products by Studying on the Possibility of being profitable in your business. Remember, following profitable business ideas is a Career, not a part-time job. Even if you’re still under employment,

You’ll still need to understand all there is to understand about your business ideas, environment and firm. No two ways about it.

Preparation

Next, you need to write business plan with your online business. Even if you don’t have all correct now, write about your new supposedly profitable business ideas, you’ll find that the cloud of uncertainty will commence brightening up When you write your business plan. It’s when you’re sitting there, writing, preparing and planning your online business that the jigsaw starts floating into place automatically. Then you will make promote judgment that when follows can give you top business ideas.

Don’t just mimic other people’s business plans. That’s one large mistake you should ignore. If you desire your work at home online business to succeed, come up with your own business plan. This is the only way to go. You can use software or programs to help you write your business plan, but you don’t mimick other people’s plans. To make a business plan for your profitable business ideas the plan should add information about possible expenditures, revenues, advertising, promotional campaigns, projection of profit.. Etc. There typically isn’t much in the way of legal documentation to be done for an online business idea. But before you commence working at it, you should check With a lawyer or a friend who is running a profitable business to make sure your ideas are not flouting any rules.

Do it Now

I must say that this has to be the hardest stage of all. Getting your Online business ideas off the ground. Deciding on and registering the domain name, hosting firm, designing the website, setting up the merchant accounts, shopping carts, uploading all the pages and images, checking links etc. Time consuming but at the end of the day, when all works out and your business ideas turn profitable, there is a outstanding level of satisfaction believing that doing all that enables you to stick to you ideas for a business till it becomes profitable.

Sell it

Now that the business is all set to receive orders and you’re all geared up about your new potentially profitable business, it’s time to commence marketing the products and services. Bear in mind that no matter how strong your ideas for a business are, it is useless if it doesn’t make money. Find ways to advertise online and offline, tie-up With partners and affiliates, get others to help you promote your ideas, use autoresponders, set up your ezine, write copies, give and take links with other websites, join forums, take part in groups related to your business etc. All in the name of selling with lots of Endurance and persistence, being profitable from your own business ideas online could be as simple and smooth as you desire it to be. Just keep your view and Goal. And don’t forget, nothing occurs overnight, so, be patient and persist, and surely do not give up.

Suitable Business Location

Background

Modern society has three aspects – social, economic, and political. The social aspect deals with association between some social group/institution (such as family, school, collage, mosque, etc.) and individual, economic aspect deals with interactive relationships between firm/industry and economic agents, and political aspect is dynamic combination of parliament, executive, judiciary, media, civil society, political parties and voters. The economic aspect has three sectors – product sector, service sector, and financial sector. Business Location is important for product sector due to concerns about availability of raw material, it is vital for services sector in order to provide convenience to customers, and it is central for financial sector for efficient communication links. Thus, business location is vital for every sector of modern economy.

Determinants of Business Location

Business growth and survival is based on multiple demand and supply factors. We may group these factors into two categories – tangible and intangible. The tangible factors can be felt with five senses, while, intangible factors cannot be felt with five senses. The prominent tangible factors are capital, land, physical convenience to customers, and cash in hand, while the prominent intangible factors are entrepreneurship, organizational behaviour, consumer tastes, and social links. At production level, after capital, the possession of land and its suitable location is the most important tangible factor that fortify and maintains manager’s stability towards business struggle. At consumption level, customers have great attraction towards easy attainment of product or service. The physical convenience to customer is an important tangible factor that shapes demand-pattern of product or service, so that business location easily accessible to customers is vital for stable customer account. Thus, the most important demand and supply factors for business survival and growth – i.e., stable customer and stable entrepreneur – are strongly linked with business location.

There may be another division of decisive ingredients of business location, input and output elements. The prominent input elements are – convenience to entrepreneur, convenience to work force, cost of transportation, efficient communication links (i.e., phone, internet, wireless, mobile, etc.), government incentives, availability of raw material, availability of cheap labour force, and operational efficiency. On the other hand, the prominent output elements are – convenience to customer, distributional ease, and business effectiveness. The optimal availability and utilization of input elements are beneficial for cost minimization, while the optimal availability and utilization of output elements is beneficial for sales maximization, thus, the combined effect of input-output elements enhances the net return of business struggle, and both are strongly linked with business location. It is noteworthy that the input-output analysis may also include the social dimensions of business location.

Business Location & Taxonomy of Business

A traditional division of economic struggle or business venture is – farming, agribusiness, mining, manufacturing, and commerce. These classifications give shape to three basic sectors of economic aspect, i.e., agriculture sector, manufacturing sector, and services sector. Agriculture sector or Farming is indispensably based on land. A suitable farm location is required for distinctive farming activities. Agribusiness are highly dependent on land output coming from agriculture sector such as cotton ginning, spinning, tannery, flour production, and sugar manufacturing. These businesses are generally located near to the source of raw material. Similarly, mining is a business highly dependent on land and its hidden treasures, such as oil & gas refinery, gems and stones, and coal extraction. Expenditures on transportation of raw material and facility of warehouses are high and costly, thus, to arrange location of these business units near to the sources of raw material is reasonable approach. The administrative units of the business are generally located somewhere else, normally near to some financial hub. Agribusiness or mining are labour-intensive or raw material-intensive industries. The capital-intensive industry opt a different approach towards business location. Industry location is decided by capital efficiency, labor or raw material is secondary, e.g., automobiles, home appliances, and military equipments. In addition, government incentives, structural facilities, and focused working environment for knowledge workers are some decisive elements for the business location of capital-intensive manufacturing sector.

Commercial businesses or services sector are customer-driven businesses. The very existence of the business depends on easy provision of product/service to consumers. These businesses are highly sensitive to location and its physical appearance, a minor mistake towards location may bring a great loss to a business, for example, a restaurant on some odd area or bit away from customer’s easy approach may be a failure. Generally the posh area brings many customers due to snob and bandwagon effects. The snob and bandwagon effects, thus, play an important role in making final decision about location of commercial business. In addition, there are multiple small factors are involved at the time of area selection, for example customer’s ease on parking, customer’s security, and pleasant customer mobility during shopping. The customized location analysis for each and every commercial business is essential and indispensable. The location analysis of retail would be different from wholesale, retail is generally profitable within city while wholesale is suitable outside the city. A virtual factor has gained special importance in commercial business, product can be displayed on virtual location, monetary transactions can be made through credit cards and product can be delivered through company’s courier service. The services sector has accommodated the benefits of virtual location but indispensability and significance of physical location cannot be wiped out.

The non-governmental organizations, trusts, hospitals, and educational institutions are important intuitions of modern society. They are inevitable and essential part of every civilized state. They are critical for physical health, psychological strength, spiritual purification, and social ties. They are managed and operated with entrepreneurial skills and personal devotion. Efficiency and effectiveness of such institutions are also depend on multiple factors such as capital, volunteers, and physical location. A facility away from volunteers or user would be less effective. The location has dual effects; it attracts volunteers as well as users. A volunteer brings time and money, thus efficiency/effectiveness is increased, and user is eventual beneficiary of a welfare activity, an ultimate goal.

Business Location & Size Analysis

A business venture has four economic sizes -micro, small, medium, and large. A micro business is a single member firm. It has, generally, less than three staff members. A micro business is started with limited capital. The legal structure of micro business is sole-proprietorship. A micro businessman is, generally, self-centered and heavily dependent on micro-management (static, short-sighted, and person-specific approach of management). Physical location is extremely important for micro-business. Land ownership gives peace of mind and sustained motivation for work to businessman. A micro businessman remains micro in his business due to micro-management or austerity leanings towards life.

A small business has, generally, less than ten staff members. The small businessman has outward looking tendencies with high ambitions. He likes/loves his product/service. The greater psychological challenge of small businessman is MANAGERIAL EGO or NARCISSIM. A small entrepreneur may remain small during his economic life time due to managerial ego/narcissism. He is unable to get synergic benefits. He can work on someone else land and gives utmost importance to capital against the micro manager who is highly land-dependent. A small entrepreneur may enhance her business status through effective entrepreneurship.

A medium business has, generally, less than hundred staff members. The owner of medium size business is outward looking with high ambitions, however, pragmatic towards business aspirations. He likes social interactions, enters into socio-economic links and develops a business circle. He is social-oriented economic entrepreneur. He is generally trapped by social links due to extreme social tendencies. The physical location is important for him for solid social ties; it is, sometime, a trap on his economic growth. The social demand extracts his multiple business energies. A medium business may be a global venture due to availability of some global social linkages. A medium entrepreneur may enhance her business status through better management of socio-economic ties. A mid-size family business is sustainable goal for him due to great social leanings towards social ties. A location-oriented socio-economic networking of business can give a stable shape to business.

A large business has, generally, more than three hundred staff members. An owner or initiator of large business is inward oriented, outward looking, dynamic, and visionary. He wants to develop an empire, thus, a suitable physical location is materialization of his entrepreneurial dreams. The boundless intentional energy or Will Power is asset of economic entrepreneur of a large business. His entrepreneurial skills towards social linkages are relatively low. It may be his strength towards business, he is able to develop or run a large business with professional zest and zeal. Due to limited social leanings and low conceptual intelligence, he is dependent on social entrepreneurs and consultants. The dependency phenomenon, i.e., reliance on consultants/social entrepreneurs, is permanent feature of a large business and demands a proactive / positive stand of owner towards dependency phenomenon. A large business may be a global concern due to presence of marked profit differences between native and global markets.

Challenges / Opportunities of Business Location

A business either micro or small or medium or large faces numerous challenges / threats. The foremost challenge to a business location is cutthroat competition. Business life is predominantly competitive by nature. A suitable business location may add / reduce the competitive environment of a business due to uneven availability of capital, work force, or customers.

The second major challenge to suitable business location comes from some cooperative businesses. A cooperative environ is needed to attain or retain some synergic benefits. A sustained unity among members is great challenge towards any strategic alliance due to lustful tendencies of human nature, mushrooming perceptual errors, continuously surfacing miscommunications, incessantly evolving socio-economic changes, and frequently occurring political upheavals. An effective leadership or stable institutional framework is inevitable for everlasting or reasonably long lasting cooperation. A suitable location can bring some advantages to a cooperative business struggle via maximum interaction among stakeholders, now and then. There may be another kind of cooperation, Anchor Benefits. A few businesses flourish due to vicinity to some renowned business, known as anchor businesses, it is forced cooperation a business gets due to its location, e.g., pharmacy develops near hospitals.

An important challenge to business location is Law & Order. A peaceful environ of area is, effectively, a cooperation from government and chaotic situation is indication of non-cooperative government. There may be some other indicators of friendly government such as merit criteria towards businesses, tax incentives to business community, and structural support of government.

Another important challenge/opportunity to business location is regional blocks/globalization. A business location gives an area of effect to entrepreneur due to linkages of the area with customers/stakeholders. A shift in linkages among areas strongly influence the area of effect of entrepreneur because a demographic basis of business is changed, a demographic shift or shift in demand may extend the business circle or may reduce it, thus, a regional/global orientation of business has structural importance for business. In addition, a business linked with some wider markets or global outlets is comparatively more dependent on suitable location due to phenomena of free/easy mobility of various input-output elements. Cost of transportation, government incentives, communication links, subtly restrained competitive-cooperative environ, and cultural aspects are involved in wider/global business, thus, intensive-extensive analysis is needed for suitable business location, physical as well as virtual. A successful native business may be a failure at wider or global level due to bigger and greater threats, while a dwindling native business may get an upwards push due to large and immense opportunities. Moreover, an entrepreneur is habitual of two comfort zones – time oriented comfort zone and space oriented comfort zone. A buying/selling interaction at wider or global level is; obviously, disturb the temporal and spatial setting / movement of entrepreneur. The time-space disturbance may be short-lived and re-adjustment might be productive and can bring long-run benefits.

Another challenging area is market volatility; a business location is frequently disturbed by market trends. A volatile trend of customer gives shocks to business, now and then. A mature and stable business can easily resist short run volatility of market trends and business location is not affected. A medium run crisis can be managed with land ownership. A change in long run trend leads towards a change in location, thus, business is disintegrated or take a new shape.

Alternatives of Suitable Business Location

We are inhabitants of an incomplete and continuously evolving universe. Ideals are relentlessly pursued, a few are materialized but a lot remains ideal. A suitable business location is sometime an unachievable ideal. There are several alternate options for suitable business location such as home business, industrial districts, vendor business, outsourcing, and virtual business. If these alternatives are chased with professional acumen and wisdom, they may become a greater blessing for business growth and survival. The synergic benefits can be reaped through these alternatives; unachievable in autonomous flights of business venture, e.g., industrial districts provide economies of scale to business venture normally available to a large business; home business can give a social push to economic struggle generally available to a large family business, virtual business may give a global look to a business journey, outsourcing can reduce overhead costs, and so on and so forth. It is note worthy the synergic benefits of alternative business locations are available to only an innovative entrepreneur. An innovative entrepreneur is stable towards crises/change, flexible towards pressures/stress, resilient towards threats/challenges, and persistent towards mission/vision.

Concluding Remarks

At the time of initiation, an entrepreneur must evaluate three aspects of a business venture. They are temporal, spatial, and informational aspects. Temporal analysis of business venture analyzes the trends of market to arrive at some reasonable revenue or demand estimates, spatial analysis considers the physical location of the business in order to minimize the input cost / distribution cost, and informational aspect considers the efficiency in flow of information for quick and accurate decisions. We are living in information age, thus, virtual location or informational aspect of business has gained special and utmost importance for business success. A virtual inefficiency may damage the physical efficiency, while the virtual efficiency may cover up, to some extent, the physical inefficiency. Thus virtual location of business, a recent phenomenon, is supportive to physical location of business.

Selling Your Business is an Investment Decision For Your Portfolio

There is an expression that states that you should not put all of your eggs into one basket. The principle behind that expression is rooted in portfolio theory that espouses diversification. Many small business owners are not properly diversified in their investment portfolios. In fact, there are many business owners who only have their business as their main asset and come to rely on the sale of their company to fund their retirement.

This article will examine some reasons why a small business owner should view business ownership through the lense of a well-diversified portfolio.

Diversification Reduces Overall Risk
Owning a business that represents a major proportion of your holdings means that you likely have a high degree of variability in your assets base. A simple real world example is an owner that does not have much money saved in RRSPs and has a business that is failing. The scenario, when looked at objectively, is one where a large asset class is under-performing and there no other assets in the basket of investments to compensate for this risk. Not a very good spot to be in.

The truth is, however, that many small business owners find themselves in the situation where all they own is their business and when it suffers then the entire “portfolio” suffers.

The key take-away is to take a hard look at all of your investments, use a professional investment advisor to consult you on an asset mix that fits your risk tolerance and then plan from there.

Some entrepreneurs may be fine with a risk profile that is heavily weighted to one investment (the business). Unfortunately, the majority of small business owners are not because they do not have the right information.

The Exit Strategy for a Business is a Key Factor
The return on small business is usually measured by the annual recurring profits that the venture makes as well as the capital gain realized by the owner on the sale of a the business. In other words, in a normal situation the total return on investment is measured by those two metrics.

The first measure (recurring profit) is relatively easy to realize – it is the ongoing economic profit that the business generates for the owners. The second one (capital gain as a result of a sale) may not be so easy. The reason is that not all businesses do sell and that is a fact that many business owners are startled to learn about.

The fact that not all small businesses are sold is a key factor when looking at your total portfolio. As a business owner, you need to have a clear grasp on the valuation of the company that the marketplace would likely deem it to be and also to be ready with that potential outcome. The problem is that many business owners expect a higher return than what the market will bear. Selling at a lower amount is not only personally difficult but also has real portfolio implications also. There are things you can do to increase your chances of successfully selling your business, which include working with a good business broker.

The key is to be well-informed when planning your portfolio with a small business as big part of it. This may require dealing with several professionals including an investment advisor, business broker, attorney and chartered accountant.